Recording a wire fee

"How does this work when you try to match it with the bank transaction? I matched a wire payment with an invoice and it doesn't seem to let me change the amount received because it's linked to my bank fee"

Make the entry for the Payment yourself, first. Process the receive payment for the full amount the customer paid. Not for the Net to Banking, because the customer didn't incur the fee. You incurred the fee.

The customer owes $200.

You process a Payment for $200.

You put this to Deposit, and on the next line, using negative, post the bank fee expense. Now you have a Total Net reduced deposit.

Now electronic banking can match that same total.

"It's customers bank charging....it's not ours."

You need to decide if you want to accept payment like this or not. Then, you need to decide if you want to charge the customer a Processing Fee if they pay by wire. Some States allow you to charge the customer the fee for payment you process by credit card and some don't allow it. You consider your Rates, as well. Banking fees are part of overhead; if you are bleeding small amounts due to banking fees, you address that issue any number of ways that will resolve it for your operational needs.

Example: I got paid for a project, payment from Lichtenstein. The amounts were large, and the wire fee was a % and was large enough that I did not intend to Absorb it. But of course, I wanted to Keep Working with these people for their large US project. So, we discussed them moving funds to their own US bank account, first.

Do you mean when you do your monthly bank reconcilliation?  I have never used the Make a deposit screen.  

To create a deposit:

1. Go to the Plus icon, then choose Bank Deposit. 
2. In the Receive From column, select the customer's name.
3. Pick Accounts Receivable in the Account column and enter the amount of the invoice. 
4. From the second line, choose the customer's name in the Received From column.
5. Enter Wire Fee expense in the Account column, then enter the amount in negative. 
6. Click Save and Close (see screenshot 1).

To match the deposit to the invoice:

1. From the Plus icon, choose Receive Payment.
2. In the Choose a customer field, pick the name of the customer. 
3. Put check marks in the Invoice and the Deposit.
4. Click Save and Close (see screenshot 2). 

Check out these articles for more details:

• How to record bank deposits
• How to record a customer payment

To create a deposit:

1. Go to the Plus icon, then choose Bank Deposit. 
2. In the Receive From column, select the customer's name.
3. Pick Accounts Receivable in the Account column and enter the amount of the invoice. 
4. From the second line, choose the customer's name in the Received From column.
5. Enter Wire Fee expense in the Account column, then enter the amount in negative. 
6. Click Save and Close (see screenshot 1).

To match the deposit to the invoice:

1. From the Plus icon, choose Receive Payment.
2. In the Choose a customer field, pick the name of the customer. 
3. Put check marks in the Invoice and the Deposit.
4. Click Save and Close (see screenshot 2). 

Check out these articles for more details:

• How to record bank deposits
• How to record a customer payment

@Mike Tyler

You receive the payment in full; it's the Banking that gets the reduction. You don't jump to Deposit First, for AR; you use Receive Payment to apply to the open invoice(s). Make sure your payment flows to Undeposited Funds.

When you create the deposit, you select the UF to add to this deposit, and then the Negative on the manual entry doesn't need a name; it is not the Customer's fault you incur a banking fee. It is generically reducing the Banking, not the customer's activity, not the payment amount and not part of Sales.

Please see my attachment.

Thanks for joining this thread, officegal-BBLLC.

Allow me to step in and help provide some insights about the open invoices report in QuickBooks Online (QBO). 

When processing a bank deposit, possible that the payment doesn't link to an invoice that's why it still shows open on the report. 

To mark the invoice as closed, here's how: 

1. In the left tab menu, click Sales.
2. Go to Customers.
3. Double-click the customer's name that has an open invoice.
4. Click New Transaction drop-down arrow.
5. Choose Payments.
6. Select the open invoice that shows on the Outstanding Transactions as well as the Unapplied Payment that shows on the Credit.  
7. Click Save and Close. 

By processing these steps, this will link the invoice and payment that you record on the bank deposit.

For additional reference, you can check this article on how to link a deposit to an invoice. 

If you need further assistance with the steps, I recommend contacting our QuickBooks Online Support Team. They have the tools to pull up your account and do a screen-share.

Here's how you can contact our customer support:

1. Sign in to your QuickBooks Online company.
2. Select Help (question mark icon) at the top right.
3. Select Contact us to connect with a live support agent.

This will get you on the right track. Don't hesitate to leave a comment below if you have additional questions about the invoice transaction. I'll be around to help you out.

I have the same issue but when I followed your instruction my deposit was recorded twice .

I must be doing something wrong but I am not sure what?

Hello, @sholeh,

It could be that you created a bank deposit while you already have an existing one. Let’s run a report to confirm if there are duplicate deposits.

Here’s how:

1. Go to Reports.
2. On the search bar, type Deposit details.
3. Click Customize.
4. Under Customize report, select General and fill out the dates.
5. Select Filter, and put a checkmark on the necessary information needed.
6. Then click Run report.
7. If you see two deposits for the same customer and amount, click the amount to open the transaction.
8. Click More at the bottom and hit Delete.

If there are no duplicates, I’d like to confirm which set of instructions in the thread have you performed to help me further check on what happened and provide you a solution from there. I’d appreciate any details you can add.

If you have other questions, please feel free to leave a comment below. I’m always here to help. Have a great day!

Hello, I hope this thread isn't too old for me to reply. I followed the instructions listed above for receiving a payment that had a wire transfer fee taken out. Everything seemed to work fine, but now I am reconciling the bank account, and it is out of reconciliation by $20. The bank statement shows the amount with the $20 taken out, but the reconciliation page shows the full amount. How do I correct the reconciliation without affecting anything else? Thanks!

Thank you for joining the thread and for the detailed information, @Moneytalks.

It's possible that the payment recorded doesn't include the deduction or the wire transfer fee of $20.00. Be sure that the amount you've input is the same amount received by the bank.

With this, I encourage looking over the payment entered. The amount that should post on your bank register shouldn't have the fee for reconciliation.

To include the wire transfer fee, add the amount in negative under the Add funds to this deposit section.

Let me know if you have any other questions. I'm more than happy to help. Have a wonderful day!

I'm using Canadian Quickbooks online.  I followed the steps as noted to handle a wire transfer fee.  I apply payment in full for the invoice.  If I say deposit to A/R (USD) as I have a Canadian AR account and a US one as I do business in both countries, then the bank shows a payment transaction with the amount applied to my bank account.  When I then do the deposit transaction, it does not list the invoices for that customer, just the deposit amount against the bank.  I apply the gross to A/R and the fee to bank fees to net out the deposit.  I then have TWO deposits to the bank - the payment one and the deposit one.  If I don't put a deposit account on the payment transaction, the bank is right (only one deposit amount) but my customer account shows me with a negative balance on the account asking if I want to create an invoice to offset it.   Is this a problem with QuickBooks online OR  a problem with me using a 2nd AR account and what's explained only works for the primary one?   I will have this type of transaction with this client repeatedly.  s the solution to do a journal entry?

Allow me to intervene, @Anonymous.

You can create an expense account for Bank Fees and then resolve the difference when matching the transaction from your Bank Feed.

This process is used if you received less than the due amount on the invoice, or it shows overdue with a balance because of Bank Fees.

If you don’t have an expense account yet, you can follow these steps. Otherwise, proceed to the second instruction below:

1. Go to Accounting from the left menu, then Chart of Accounts.
2. Select New.
3. Create an Expense account for Bank Charges, and name it Bank Fees.
4. Press the Save and close. 

Once done, you can resolve the difference between the invoice and the payment when matching transactions from your Banking page. Here’s how:
Choose Banking.

1. Select Banking, then choose the bank account with the transaction.
2. Locate and select the relevant transaction on the For Review tab.
3. Select Find Match.
4. In the Match transactions window, select the checkbox of the appropriate invoice.
5. Select Resolve Difference to open the Add resolving transaction fields.
6. Click Add new transaction.
7. From the drop-down list in the Category field, select the Bank Fees expense account you created.
8. Enter the Amount of the bank fee.
9. Hit Save and close.

Another way also is to create a credit memo/delayed credit to reduce the balance on customer transactions. Please see this article for reference: Create and apply credit memos or delayed credits in QuickBooks Online.

I’ve also added a link that will guide you through on how to review and match them moving forward: Categorize and match online bank transactions in QuickBooks Online.

I’ll be here always if you have other concerns with QBO. Have a great day.

Hi Ray,

These instructions worked well except when I add funds to the deposit for the bank fee, it will only allow me to assign a "class" to the transaction- not customer nor location. Any idea how I can associate the bank fee with these additional tags?